A legal challenge is being prepared over what £93 million of taxpayers' money in a joint council scheme is being spent on as councillors call for greater transparency into its finances.

Andrew Rowson, a former auditor and a business software expert, has made a formal objection to the 2014 and 2015 draft financial statements of LGSS (Local Government Shared Service), Cambridgeshire County Council’s shared services venture with Northamptonshire County Council and Milton Keynes Council.

Mr Rowson says he is worried about the organisation’s finances, and claims that there could be up to £93 million worth of taxpayer’s money that has not been properly accounted for.

LGSS was set up in 2010. It is one of the largest public sector shared services ventures in the UK, and helps run adult social care services, health care, and schools.

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Speaking at the LGSS joint overview and scrutiny working group yesterday (April 3), auditors defended the organisation’s accounts as councillors joined the calls for greater transparency in LGSS’ activities.

Mr Rowson said: “There is no audit trail to validate the £93 million of income and expenditure between LGSS and the two county councils (Cambridgeshire and Northamptonshire) that we’re told took place in 2013 to 2014. Why not?

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“I believe these accounts are unsafe, and so I’m now preparing a legal challenge. LGSS is not a transparent organisation.”

Andrew Cardoza, an independent auditor at KPMG LLP, tasked with looking over the accounts, said Mr Rowson’s complaints had been looked into and that there were no issues with the finances.

Cllr Mike Mason questioned why it had taken to long for auditors to respond to Mr Rowson’s concerns which, he says, were made 18 months before he heard anything back. Mr Cardoza said Mr Rowson’s complaints had been very complicated and it had taken time to scrutinise them properly.

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Cllr Paul Clapp called for LGSS to be more transparent with its accounts so councillors could understand what was being done with its resources.

He said: “Every council should have accounts and they should be transparent and, right now, they are not. We all need to know where that money is going. It is taxpayers’ money.”

John Kane, managing director of LGSS, defended the accounts and said the organisation was subjected to high levels of scrutiny.

He said: “Our accounts are no more or less transparent than anything else that goes through this authority. They are audited in the same way and are subject to the same overview and scrutiny. There is nothing un-transparent about them.”

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“Things are being hidden,” he said. “Everyone round this table has the right to know what is going on.”

Cllr Lynda Harford, co-chair of the working group, said there was no evidence to suggest anything was being hidden. She called on LGSS to be more transparent and the working group moved to recommend LGSS to work with officers to make sure the system was properly explained and understood by all.